Aviation companies are struggling to buy new aircraft and are now looking at leasing options.

Leasing is said to have grown to become a core mechanism for the financing of commercial aircraft. Over 30 per cent of the world’s aircraft fleet – more than 6,000 jets – are leased to around two thirds of the industry’s airlines.

Avolon’s initial focus is to expand its aircraft fleet and provide sale and leaseback and other financing services to airlines worldwide. The company also provides lease management services to third party aircraft owners.

Avolon said that it has initiated contracts and letters of intent for the purchase of 26 aircraft.

Private equity firms Cinven, CVC, Oak Hill Capital all have experience of investing in the aviation and aerospace sector.